Question

Should Larson recommend the corporate-image advertising campaign and corporate name change to Rockboro’s directors? Is it relevant to the payout policy analysis?

a) Yes, it aligns with financial goals.
b) No, it deviates from market trends.
c) Yes, it impacts brand perception.
d) No, it lacks shareholder impact.

Answer 1

The corporate-image advertising campaign and corporate name change can impact brand perception and are relevant to the payout policy analysis.

Step-by-step explanation:

The question is asking whether Larson should recommend the corporate-image advertising campaign and corporate name change to Rockboro’s directors and if it is relevant to the payout policy analysis.

The answer is c) Yes, it impacts brand perception.

The corporate-image advertising campaign and corporate name change can impact brand perception, which is an important consideration for the company's payout policy. A positive brand perception can attract more customers and increase sales, which can ultimately affect the company's financial goals and the dividends it can distribute to shareholders.